Cathay to axe 600 jobs by year-end
HONG KONG: Cathay Pacific Airways Ltd, Asia’s biggest international airline, will eliminate 600 jobs as part of the biggest revamp in two decades following its first loss in eight years.
The majority of the affected employees were informed yesterday and most of the restructuring would be completed by the end of this year, it said yesterday.
No frontline employees, pilots or cabin crew would be affected, it added. The carrier, affiliated airlines and other businesses employed 33,000 people as of June last year.
Despite booming demand for air travel in Asia, Cathay and Singapore Airlines Ltd are among premium carriers reeling under intense competition from lowcost carriers, Chinese mainland rivals and Middle-Eastern operators such as Emirates.
Singapore Air last week reported a surprise loss and announced a “wide-ranging review” of its business as well.
“Everyone was becoming more cost conscious,” said Andrew Lee, an analyst at Jefferies, here.
“To survive, they need to control costs. I think it is a start,” he said, referring to Cathay.
The airline will also restructure its cargo department by removing the role of cargo director.
“We have to make tough but necessary decision for the future of our business and customers,” said Rupert Hogg, who became chief executive officer on May 1.
The job cuts would involve 190 managerial positions, representing 25 per cent of management, said Cathay.
The airline has said it is targeting savings of about 30 per cent from staff cost cuts at its headquarters. Bloomberg
Cathay Pacific Airways says it will cut 190 managerial positions, representing 25 per cent of management.